Banks raised credit score to merchants by 62%, lower manufacturing lending by 27% – MAN

 Nigerian banks elevated excellent credit score to merchants by 62.04 per cent within the first half of 2026, whereas lending to producers contracted by 26.94 per cent, elevating issues amongst trade stakeholders about financing constraints dealing with the productive sector.

The growth comes because the Manufacturers Association of Nigeria (MAN) warns that top borrowing prices proceed to undermine producers’ entry to inexpensive funds, regardless of current changes to financial coverage.

Data revealed by the Central Bank of Nigeria (CBN) confirmed that common excellent credit score to commerce and common commerce rose to N5.94 trillion within the first half of 2026, from N3.66 trillion within the corresponding interval of 2025.

Conversely, manufacturing credit score declined to N5.71 trillion from N7.81 trillion over the identical interval.

The figures signify common excellent mortgage balances, quite than the entire worth of recent loans granted throughout the interval.

MAN Director-General, Segun Ajayi-Kadir, has beforehand warned that prime lending charges hovering round 30 per cent might proceed to limit producers’ entry to inexpensive financing.

His concern displays the difficulties companies face in securing funds to buy uncooked supplies, keep equipment, develop manufacturing and meet working-capital necessities.

The decline in manufacturing credit score additionally follows trade issues over a reported N1.92 trillion discount in financial institution lending to the sector throughout 2025.

The newest CBN figures point out that manufacturing’s share of whole excellent financial institution credit score fell from 16.43 per cent within the first half of 2022 to 9.58 per cent within the first half of 2026.

Trade and common commerce recorded the strongest year-on-year improve in excellent credit score in absolute naira phrases amongst sectors that skilled development.

Agriculture, development, energy and vitality, and transportation and storage additionally recorded will increase. Overall, 12 of the 17 sectors tracked posted development, whereas 5 recorded declines.

Industrial oil and fuel remained the most important recipient of financial institution credit score, though its excellent steadiness fell. General providers, info and communication expertise, and actual property additionally recorded contractions.